By Kaitlyn Ersek on Apr 2, 2020 1:34:10 PM
Dear Holganix Community,
We have spent some time this week trying to figure out the details of the small business funding that is available to help companies who may have been impacted by COVID-19.
We believe many small businesses in the Holganix community could be affected in some way as a result of COVID-19 related actions. These businesses could include our distributors, lawn care and landscape contractors, as well as our farmers.
Our understanding of the program is that anyone who has had any payroll in 2019 or 2020 and believes they have been or could be impacted by COVID-19 should consider applying for the Paycheck Protection Program. If you have incurred or believe you will incur extra expenses, loss of demand, or forced to make layoffs as a result of COVID-19 then you may be considered an impacted company.
5 Quick Points Regarding the Program
- You will qualify for an amount equal to your average monthly payroll multiplied by 2.5 times. For example, if your annual payroll was $120,000, divide by 12 = $12,000, Multiply by 2.5 = $30,000 as an amount you might qualify for.
- If you can document expenses relating to payroll, rent, and insurance that equals or exceeds the loan amount then the loan will be forgiven completely. Conversely, if you have expenses that do not meet or exceed the loan amount within the allotted time-frame, then the funds will be considered a loan. The interest rate may be 0.5 percent interest. In addition, the payments may be deferred for 6 months, with the loan needing to be repaid in 2 years.
- No personal guarantee, no lien on assets, no credit check. It should be relatively simple for most who have been impacted to be approved.
- You need to apply for the loan with your bank and your bank must be SBA approved.
- The loan is 100% guaranteed by the US Government, so the bank has no risk.
If you plan to apply, it is our understanding that time is of the essence. The program will be available starting this Friday, April 3rd.
The government has approved $349 billion to fund this program. It is likely this amount will be used up in a matter of days. If this happens the government has said they will likely approve more funds but we can’t be certain of this.
5 Additional Resources To Learn More
Below, we attached the following resources to help the Holganix community better understand this program and, if appropriate, apply for this program with their bank.
- Borrower Paycheck Protection Program Application
- PPP Borrower Information Fact Sheet
- Paycheck Protection Program Checklist
- PPP Max Loan Amount Calculation worksheet
- Beneficial Ownership Collection Short Form
We are passing along information and documents we have collected from our own research. We are not experts in this field and we are not making any recommendations.
- We are in an unprecedented time in history, and the information available is changing rapidly.
- Information provided is based upon our best judgment about what we know at this time.
- Holganix LLC does not accept any liability as it relates to the timeliness or content of the information we are sharing today or may share in the future (and we are under no legal duty to update any such information or recommendations)
- We want it to be clear that while we are happy to provide information about these new government programs, we are not acting as agents, packagers or brokers
- We encourage you to check in with your attorneys, CPAs and financial advisors for additional insights
Stay safe and thank you for being part of the Holganix community!
The Holganix Team